Most Australians understand that mining plays a central role in our economy. It is our largest export industry by far. It was critical to Australia maintaining a growing economy while other countries went into recession in the Global Financial Crisis. And since the turn of the century, mining growth has helped lift Australian living standards substantially.
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The best estimate of the Reserve Bank of Australia is that national income per capita rose about 13 per cent above what it would have been in the absence of the mining boom.
In a sense, however, such figures – though very real from a national perspective – can seem somewhat abstract at a local level.
People understandably care more about what a mining project may mean for towns and communities in places like the Palerang shire.
I know there has been a lively debate about Unity Mining’s project – the Dargues Gold Mine – and what impact it will have on communities such as Braidwood, Majors Creek and downstream in the Araluen and Deua Valleys.
The mine itself is projected to generate at least 120 jobs directly in the region. Then there are the related benefits for local economic activity. Analysis done for the Minerals Council of Australia estimates that for every gold mining job generated, there are roughly another four jobs that are supported across the economy.
We know that a mining job is not just any job. It can lift household incomes substantially. Average earnings in the mining sector, at more than $130,000 a year, are roughly 60 per cent higher than the state average in New South Wales.
The annual wage bill from direct jobs alone created by the Dargues mine will be around $20 million. That will provide an enormous boost to local businesses and job prospects.
These benefits should not be seen simply in economic terms. The Dargues project is also a vote of confidence in the region’s future. Research done by KPMG has shown that when mining is part of a regional economy it helps to stimulate population growth crucial to sustainable communities.
Like other parts of rural and regional Australia, the Palerang shire faces a constant challenge when it comes to offering meaningful opportunities for younger people to live, work and bring up a family.
After speaking at length with Andrew McIlwain from Unity Mining the other day, I decided to do some research of my own. One statistic stood out for me as underlining why I believe the Dargues project should receive community support.
I was a bit surprised to learn that those in the 18 to 35 age bracket make up just 14 per cent of the population of the Palerang region. That’s much lower than the state average of 23 per cent.
There may be lots of reasons why that’s the case. But it suggests to me that more can and should be done to generate local jobs that at least give younger people the chance of staying close to the community in which they grew up, if that is their wish.
Of course, there is a legitimate debate about the environmental impact of any mining project. The Dargues Gold Mine is no exception.
Understanding community concerns and working with people of goodwill to ensure community expectations are addressed is the core business for any modern and responsible mining company.
Unity Mining has worked hard to ensure that the safety of workers and communities, and of the surrounding environment, is at the forefront of the plans for the mine.
It’s also the case that mining is among the most heavily regulated industries in Australia, mainly through state laws and regulations. The use of materials like cyanide, for example, is strictly regulated by government.
Community discussion over the Dargues gold mine will continue. That’s appropriate because it provides the feedback companies need to achieve community acceptance and support. However, I am confident that fair-minded observers will come to see overtime that the benefits for the people of the Palerang shire from the project are overwhelmingly positive.
